The Heat Networks (Market Framework Regulations) (Great Britain) 2025 are expected to soon affect almshouse charities with communal boilers that provide heating to multiple occupancies. It’s essential for these charities to be aware of their responsibilities under the new regulations. While some details are still uncertain, we’ve compiled a fact sheet below with the information available so far.
What has happened?
In 2018 the Competition & Markets Authority (“CMA”) recommended the regulation of the heat network sector. Since then and following two consultations, the Government has implemented the Energy Act 2023 (the “Act”) and will shortly implement the Heat Networks (Market Framework Regulations) 2025 (the “Regulations”).
The UK Government has introduced the Regulations to establish a comprehensive regulatory framework for heat networks. Guidance from the Government is forthcoming, so members should be aware that these changes will be taking place and prepare accordingly.
All regulations are planned to be in place and enforced from January 2027.
Who does it affect?
If a member charity has a communal boiler which heats multiple occupancies, it is likely to be classed as a heat network, and therefore the member charity will be a heat network supplier or operator.
Although almshouses have been previously exempt under the existing Heat Network (Metering and Billing) Regulations 2020, it is likely that the new standards which will come into force by 2026 will apply to almshouses. It is therefore a good idea to prepare for this, by following good standards of practice.
What is the change?
All existing heat network operators and suppliers will be deemed authorised from 1 April 2025. New networks will need to register. At the same time, the Consumer Advocacy bodies (Citizens Advice in England and Wales, Consumer Scotland in Scotland) will provide advice and advocacy services for heat network consumers, and the Energy Ombudsman will help to resolve disputes.
Areas known as ‘heat network zones’ will also be designated where heat networks are expected to be the lowest cost solution for decarbonising heat. Certain buildings within zones may be required to connect to heat networks within a specified timeframe, but the rules for this have not been announced yet (February 2026). In the meantime, six Advanced Zoning Programmes are active, including regions such as Bristol and two areas within London. The government have also published a response to their heat network zoning consultation, which also suggests that the regulations are expected to be laid before parliament in spring 2026.
What’s happened so far?
Heat networks regulation is being introduced in phases. So far:
- Citizens Advice, Consumer Scotland and Energy Ombudsman have launched advocacy, advice and redress services for heat networks customers and suppliers
- all operating heat networks have been automatically authorised to continue to supply heating, cooling or hot water (‘deemed authorisation’)
- Ofgem have published a set of rules for heat network operators and suppliers, called authorisation conditions
What happens next?
Operators and suppliers of relevant heat networks must give Ofgem details about their heat network’s organisation, ownership, financial resilience and consumer protection arrangements by 26 January 2027. From spring 2026, this can be submitted online.
What do members who are affected need to do now?
If an almshouse has a communal boiler that heats multiple units, here’s what the charity needs to do:
- If an almshouse has a communal boiler that heats multiple units, here’s what the charity needs to do:
- Prepare for Ofgem registration: Following a period of being automatically authorised to operate, all heat networks will be required to notify Ofgem to maintain their authorised status after January 2027. Government encourages all heat networks to prepare for regulation now by following existing good practice, such as that set out by the Heat Trust and the industry’s Code of Practice.
- Understand the rules: review the new regulations on heat networks, including standards for billing and system efficiency. Sign up to zoning alerts, ready for when they are implemented.
- Check system compliance: make sure the boiler and heating system meet required standards,nderstand the rules: review the new regulations on heat networks, including standards for billing and system efficiency. Sign up to zoning alerts, ready for when they are implemented.
- Check system compliance: make sure the boiler and heating system meet required standards, including safety and energy efficiency.
- Ensure fair billing: the Regulations require that the prices for heating through the network are clear and fair. Make sure residents are charged fairly, based on actual heat usage. Further consultations will develop a fair pricing network later this year.
- Seek advice: consider getting legal or regulatory advice to ensure full compliance with the rules. Members may wish to seek advice from our panel of consultants who have been recommended by other members and are familiar with the almshouse model.
DESNZ has published short guidance notes and videos setting out practical steps to help operators improve the performance of existing heat networks, as well as consumer protection, fair pricing protections, and financial resilience.
Keep up to date on heat network regulation:
Support available:
| Scheme | Who can apply | Deadline |
| Heat Network Efficiency Scheme (HNES) | As a heat network provider. | Round 12 is expected to open in March 2026 and close in May 2026. |
| Green Heat Network Fund (GHNF) | The GHNF provides capital grant funding to organisations in the public, private and third sectors in England. | GHNF Round 11 is open for applications and will close at 11.59pm on 1 May 2026. |
| Heat Training Grant | You can get a grant of up to £500 towards eligible courses in the areas such as operation and maintenance, metering and feasibility. | Applied for via training provider. One grant per person as a discount or rebate depending on the course price. |
Should you have any queries, please do not hesitate to contact the team here at the Association.
updated 23 Feb 2026